(4) Plunder under Republic Act No.

7080, as amended;
Overview of the Anti-Money (5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301
Laundering Act (AMLA) and 302 of the Revised Penal Code, as amended;
(6) Jueteng and Masiao punished as illegal gambling under Presidential
Decree No. 1602;
(7) Piracy on the high seas under the Revised Penal Code, as amended
1. Legislative Background and Presidential Decree No. 532;
●​ Republic Act No. 9160 (2001): Known as the original AMLA, (8) Qualified theft under Article 310 of the Revised Penal Code, as
enacted on September 19, 2001, it established the legal amended;
framework for combating money laundering in the Philippines. (9) Swindling under Article 315 and Other Forms of Swindling under
●​ Republic Act No. 9194 (2003): Amended RA 9160 to Article 316 of the Revised Penal Code, as amended;
strengthen AMLA’s provisions, particularly regarding the (10) Smuggling under Republic Act Nos. 455 and 1937;
definition of money laundering and the powers of the (11) Violations of Republic Act No. 8792, otherwise known as the
Anti-Money Laundering Council (AMLC). Electronic Commerce Act of 2000;
●​ Republic Act No. 10167 (2012): Further amended AMLA to (12) Hijacking and other violations under Republic Act No. 6235;
align with international standards, introducing improvements in destructive arson and murder, as defined under the Revised Penal
the act’s framework. Code, as amended;
●​ Republic Act No. 10365 (2013): Additional amendments that (13) Terrorism and conspiracy to commit terrorism as defined and
expanded AMLA’s scope, including the enhancement of penalized under Sections 3 and 4 of Republic Act No. 9372;
international cooperation and increased coverage. (14) Financing of terrorism under Section 4 and offenses punishable
●​ Republic Act No. 10927 (2017): Extended AMLA’s coverage under Sections 5, 6, 7 and 8 of Republic Act No. 10168, otherwise
to include casinos, mandating their compliance with known as the Terrorism Financing Prevention and Suppression Act of
anti-money laundering regulations. 2012;
●​ Republic Act No. 11521 (2021): The latest amendment to (15) Bribery under Articles 210, 211 and 211-A of the Revised Penal
AMLA, which further updates the framework to address Code, as amended, and Corruption of Public Officers under Article 212
emerging challenges in money laundering. of the Revised Penal Code, as amended;
(16) Frauds and Illegal Exactions and Transactions under Articles 213,
2. Purpose 214, 215 and 216 of the Revised Penal Code, as amended;
Section 2: Declaration of Policy (17) Malversation of Public Funds and Property underArticles 217 and
●​ Protect and preserve the integrity and confidentiality of bank 222 of the Revised Penal Code, as amended;
accounts. (18) Forgeries and Counterfeiting under Articles 163, 166, 167, 168, 169
●​ Ensure the Philippines is not used for money laundering of and 176 of the Revised Penal Code, as amended;
unlawful activity proceeds. (19) Violations of Sections 4 to 6 of Republic Act No. 9208, otherwise
●​ Cooperate in transnational investigations and prosecutions of known as the Anti-Trafficking in Persons Act of 2003;
money laundering. (20) Violations of Sections 78 to 79 of Chapter IV, of Presidential Decree
●​ Implement targeted financial sanctions related to terrorism No. 705, otherwise known as the Revised Forestry Code of the
financing, per UN Security Council resolutions. Philippines, as Amended;
(21) Violations of Sections 86 to 106 of Chapter VI, of Republic Act No.
Reference: RA 9160 Section 2 8550, otherwise known as the Philippine Fisheries Code of 1998;
(22) Violations of Sections 101 to 107, and 110 of Republic Act No.
II. Money Laundering Defined 7942, otherwise known as the Philippine Mining Act of 1995;
(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic Act No.
1. Definition and Purpose 9147, otherwise known as the Wildlife Resources Conservation and
●​ Objective: Money laundering involves disguising the true Protection Act;
origin of money derived from illegal activities. This is done to (24) Violation of Section 7(b) of Republic Act No. 9072, otherwise known
make the funds appear as if they come from legitimate as the National Caves and Cave Resources Management Protection
sources. Act;
Reference: RA 9160 Section 4 (25) Violation of Republic Act No. 6539, otherwise known as the
●​ Goal: Criminals engage in money laundering to avoid Anti-Carnapping Act of 2002, as amended;
detection and legal consequences, enabling them to use and (26) Violations of Sections 1, 3 and 5 of Presidential Decree No. 1866,
enjoy illicit funds without raising suspicion. as amended, otherwise known as the decree Codifying the Laws on
Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or
2. Predicate Crimes Disposition of Firearms, Ammunition or Explosives;
●​ Evolution: Initially, there were 14 predicate crimes under (27) Violation of Presidential Decree No. 1612, otherwise known as the
AMLA in 2003, but this number increased to 36 by 2023. Anti-Fencing Law;
Predicate crimes are criminal activities whose proceeds are (28) Violation of Section 6 of Republic Act No. 8042, otherwise known as
subject to money laundering. the Migrant Workers and Overseas Filipinos Act of 1995, as amended by
●​ Prosecution: The prosecution for money laundering is Republic Act No. 10022;
separate from that for the underlying predicate crimes. This (29) Violation of Republic Act No. 8293, otherwise known as the
means individuals can be tried and sentenced for both money Intellectual Property Code of the Philippines;
laundering and the original crime. (30) Violation of Section 4 of Republic Act No. 9995, otherwise known as
●​ Coverage: specified in Section 3 and Section 4 of RA 10167 the Anti-Photo and Video Voyeurism Act of 2009;
and RA 11521 (31) Violation of Section 4 of Republic Act No. 9775, otherwise known as
○​ “Unlawful activity” refers to any act or omission or the Anti-Child PornographyAct of 2009;
series or combination thereof involving or having (32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of
direct relation to the following: Republic Act No. 7610, otherwise known as the Special Protection of
— ChildrenAgainst Abuse, Exploitation and Discrimination;
(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise (33) Fraudulent practice and other violations under Republic Act No.
known as the Revised Penal Code, as amended; 8799, otherwise known as "The Securities Regulation Code of 2000;
(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of Republic Act (34) Violation of Section 9 (a)(3) of Republic Act No. 10697, otherwise
No. 9165, otherwise known as the Comprehensive Dangerous Drugs Act known as the "Strategic Trade Management Act", in relation to the
of 2002; proliferation of weapons of mass destruction and its financing pursuant
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, to United Nations Security Council Resolution Numbers 1718 of 2006
as amended, otherwise known as the Anti-Graft and Corrupt Practices and 2231 of 2015;
Act;
(35) Violation of Section 254 of Chapter II, Title X of the National Internal activity and they engage in transactions, conversions, or any
Revenue Code of 1997, as amended, where the deficiency basic tax due form of use of the money.
in the final assessment is in excess of Twenty-five million pesos ●​ Aiding and Abetting: AMLA also considers aiding, facilitating,
(P25,000,000.00) per taxable year, for each tax type covered and there attempting, or conspiring to commit money laundering as
has been a finding of probable cause by the competent authority: criminal offenses, even if the person does not directly engage
Provided, further, That there must be a finding of fraud, willful in the money laundering acts themselves.
misrepresent ting or malicious intent on the part of the taxpayer: Reference: Section 4
Provided, finally, That in no case shall the AMLC institute forfeiture
proceedings to recover monetary instruments, property or proceeds 2. Specific Offenses
representing, involving, or relating to a tax crime, if the same has already ●​ Concealment (Paragraph C): hiding Information; individuals
been recovered or collected by the Bureau of Internal Revenue (BIR) in are guilty of money laundering if they knowingly conceal or
a separate proceeding and disguise the nature, source, location, disposition, movement,
(36) Felonies and offenses of a similar nature that are punishable under or ownership of the dirty money.
the penal laws of other countries. Examples: This could include falsifying records, hiding money
through shell companies, or using front businesses to launder
Reference: Section 3 and Section 4 money.
●​ Attempt and Conspiracy (Paragraph D):
III. Reasons for Money Laundering ○​ Attempt: Even if a person does not complete the act
of money laundering, attempting to engage in it is
1. Avoiding Detection punishable.
●​ Unexplained Wealth: Large or sudden increases in wealth or ○​ Conspiracy: Collaborating with others to commit
spending can attract suspicion. If these changes are money laundering is also considered a crime, with
inconsistent with known sources of income or lifestyle, they all participants being held liable.
may trigger investigations. Reference: Section 4
Reference: Section 8 of RA 9194 3. Penalties
●​ Confiscation and Forfeiture: Criminals attempt to launder Reference: Section 11
money to avoid having their illicit funds seized by authorities. a.​ Main Acts (Paragraphs A and B)
By making the money appear legitimate, they aim to retain and ●​ Penalty: 7 to 14 years imprisonment and a fine of ₱3 million to
use it even if they are eventually caught and imprisoned. twice the value of the dirty money.
Reference: Revised Penal Code
b.​ Facilitation (Paragraphs E and F)
2. Legal Basis for Confiscation ●​ Penalty: 6 months to 4 years imprisonment and a fine of
●​ Article 45 of the Revised Penal Code: This provision allows ₱100,000 to ₱500,000.
for confiscating and forfeiting assets derived from criminal
activities. It ensures the government can seize illicit money c.​ Failure to Report
and prevents criminals from benefiting from their illegal ●​ Penalty: Same as for facilitation, but specifically for covered
actions. persons who fail to report suspicious transactions.
Reference: Article 45 of the RPC
VI. Obligations of Covered Persons
IV. Stages of Money Laundering
Reference: Section 4 1. Definition
1. Placement ●​ Covered Persons: The term refers to individuals or entities
●​ Introduction: In this initial stage, dirty money is introduced required to comply with AMLA regulations. This includes
into the financial system. This can be done through various financial institutions and certain non-financial businesses and
methods, such as depositing the funds into bank accounts or professions.
investing in legitimate businesses. Reference: Section 4
●​ Objective: The goal is to start integrating illicit money into the
financial system, making it less suspicious and more difficult to
trace. 2. Categories of Covered Persons
Regulatory Bodies: Covered persons include those under the
2. Layering supervision of:
●​ Separation: This stage involves creating layers of financial ●​ Bangko Sentral ng Pilipinas (BSP): Regulates banks and other
transactions to obscure the origin of the money. The criminal financial institutions.
engages in multiple transactions to confuse the trail and make ●​ Insurance Commission: Regulates insurance companies.
it harder to trace the money back to its illicit source. ●​ Securities and Exchange Commission (SEC): Oversees
●​ Techniques: Layering can include transferring funds between securities and investment activities.
different accounts, making investments, or engaging in ●​ Designated Non-Financial Businesses and Professions
complex financial transactions to hide the money's origin. (DNFBPs): Includes businesses like real estate agents,
casinos, and lawyers.
3. Integration Reference: Section 4
●​ Legitimization: In the final stage, the laundered money is 3. Main Obligations
reintroduced into the economy, appearing as if it comes from Reference: Section 9
legitimate sources. This can involve purchasing assets like a.​ Customer Due Diligence (CDD)
real estate, jewelry, or art. ●​ Identification and Verification: Covered persons must verify
●​ Objective: The aim is to make the money appear clean and the identity of their customers and assess their risk profiles.
lawful, allowing the criminal to use and enjoy the funds without This process is often referred to as "Know Your Customer"
arousing suspicion. (KYC).
●​ Account Requirements: Accounts must be opened and
maintained under the true and full name of the account holder.
V. Acts Considered as Money Laundering
Anonymous or fictitious accounts are prohibited.
1. Main Acts (Paragraphs A and B)
b.​ Record Keeping:
●​ Liability: A person is liable for money laundering if they know
●​ Documentation: Covered persons must maintain records of
that the money involves or relates to the proceeds of unlawful
all transactions for 5 years or longer if necessary due to
ongoing investigations or legal cases.
 ●​ Penalties: Failure to comply with record-keeping requirements ○​ Immunity for Candidates: No money laundering
can lead to imprisonment of 6 months to 1 year, and fines cases or asset freezes can occur against electoral
ranging from 100,000 to 500,000 pesos. candidates during election periods.

c.​ Reporting Requirements:

●​ Covered Transaction Reports (CTRs): Required for
transactions exceeding specified thresholds. For example,
cash transactions over 500,000 pesos must be reported.
●​ Suspicious Transaction Reports (STRs): Must be filed for
Covered Persons
transactions with suspicious circumstances, regardless of the
amount. Examples include transactions with no clear legal
purpose or those deviating from the client’s usual financial Covered persons are individuals and entities upon whom AMLA
behavior. imposes obligations to prevent money laundering.

VII. Reporting and Confidentiality Reference: Section 3, Paragraph (a) of AMLA.

Reference: Section 11
1. Safe Harbor Provision 2. Categories of Covered Persons
●​ Protection: Reports made in good faith are protected from
legal consequences, ensuring that covered persons are not A. Supervised by Banco Central ng Pilipinas (BSP):
penalized for reporting suspicious activities. ●​ Entities Included:
●​ Exceptions: The Safe Harbor provision does not apply if the ○​ Banks
report is made in bad faith, such as to harass or blackmail ○​ Pawnshops
someone. Such actions can lead to criminal charges for ○​ Foreign Exchange Dealers
malicious filing. ○​ Non-bank Financial Institutions
●​ Reference: Implementing Rules and Regulations (IRR) under
2. Confidentiality AMLA.
●​ Disclosure Prohibition: Covered persons must keep
information about CTRs and STRs confidential. Unauthorized B. Supervised by Insurance Commission:
disclosure or publication of these reports is punishable by ●​ Entities Included:
imprisonment of 3 to 8 years and fines of 500,000 to 1 million ○​ Insurance Companies
pesos. ○​ Reinsurance Companies
●​ Purpose: This confidentiality requirement is intended to ○​ Pre-need Companies
protect the privacy of individuals and the integrity of ○​ Insurance Agents and Brokers
investigations. ●​ Reference: Implementing Rules and Regulations (IRR) under
AMLA.
VIII. Legal Remedies
Reference: Section 11 C. Supervised by Securities and Exchange Commission (SEC):
1. Bank Inquiry ●​ Entities Included:
●​ Authority: AMLC and BSP can inquire into financial accounts ○​ Securities Dealers and Brokers
if there is probable cause of connection to illegal activities or ○​ Investment Houses
money laundering. This may involve applying for a court order ○​ Entities Engaged in Financial Derivatives
or issuing resolutions for specific cases. ○​ Entities Dealing with Cash Substitutes
●​ Procedure: Bank inquiries can be conducted by the AMLC or ●​ Reference: Implementing Rules and Regulations (IRR) under
BSP as part of their regulatory duties or in response to specific AMLA.
investigations.
D. Designated Non-Financial Businesses and Professions
(DNFBPs):
●​ Entities Included:
2. Freeze Order ○​ Jewelry Dealers
●​ Objective: Prevents the movement or disposal of suspected ○​ Casinos
illicit funds. The freeze order is effective for 20 days, with ○​ Offshore Gaming Operators
possible extensions up to 6 months. ○​ Real Estate Brokers and Developers
●​ Conditions: During the freeze period, account owners may be ●​ Reference: Implementing Rules and Regulations (IRR) under
allowed to withdraw necessary amounts for essential needs. AMLA.

3. Civil Forfeiture E. Exclusions:

●​ Process: Aimed at confiscating illicit funds for government ●​ Lawyers and Accountants:
use. Forfeiture proceedings are filed in the Regional Trial ○​ Excluded from AMLA obligations related to client
Court and are managed by the Office of the Solicitor General. information unless they manage client money,
●​ Requirements: The government must prove that the funds securities, or other assets.
are derived from illegal activities. ○​ Obligations Apply: When they handle services
such as management of funds, organization of
4. Prosecution company contributions, or buying and selling of
●​ Distinct Charges: Money laundering offenses are prosecuted business entities.
separately from predicate crimes. This ensures that individuals ●​ Reference: Implementing Rules and Regulations (IRR) under
can face legal consequences for both the original crime and AMLA.
the act of laundering the proceeds.
●​ Evidence: The prosecution must demonstrate all elements of
money laundering beyond reasonable doubt. 3. Key Obligations of Covered Persons

IX. Prohibition Against Political Harassment A. Customer Identification or Due Diligence (CDD):
Reference: Section 16 ●​ Definition: The process of identifying and verifying the true
●​ Election Protection identity of customers, their agents, and beneficial owners.
●​ Objectives:
○​ Identify customers and beneficial owners.
 ○​ Determine risk posed by each customer. ○​ Imprisonment of six months to four years or fines of
○​ Establish, maintain, or terminate business PHP 100,000 to PHP 500,000, or both.
relationships. ●​ Reference: AMLA Section 9 and its IRR.
○​ Assess the level of monitoring required.
●​ Components of CDD:
○​ Customer Identification Process (CIP): Collecting 5. Additional Obligations
and recording proof of identity.
○​ Customer Verification Process (CVP): Verifying A. Registration with AMLC’s Electronic Reporting System:
the true identity and authenticity of documents. ●​ Requirement: For filing CTRs and STRs.
○​ Identification and Verification of Agents (IVA):
Confirming the identity and authority of agents. B. Institutional Risk Assessments:
○​ Beneficial Ownership Verification (BOV): ●​ Requirement: Conducting internal audits and risk
Identifying and verifying beneficial owners. management.
○​ Ongoing Monitoring: Regular review of accounts
and transactions. C. Money Laundering and Terrorism Financing Prevention Program
●​ Enhanced Due Diligence (EDD): Required for higher-risk (MTTP):
scenarios, including dealings with politically exposed persons ●​ Requirements: Developing and implementing policies.
(PEPs), shell companies, and foreign jurisdictions.
●​ Reference: AMLA Section 9 and its IRR. D. Designation of Compliance Officer:
●​ Requirement: To ensure adherence to AMLA.
B. Record Keeping:
●​ Requirements: E. Employee Screening and Continuing Education:
○​ Maintain and store customer records and ●​ Requirement: High standards for hiring and ongoing training.
transaction documents for five years from the date ●​ Reference: AMLA and its IRR.
of the transaction.
○​ For closed accounts, records must be preserved for
at least five years after account closure or until a
legal case involving the account is resolved.
●​ Penalties for Non-Compliance:
○​ Imprisonment of six months to one year, or fines
ranging from PHP 100,000 to PHP 500,000, or both.
●​ Reference: AMLA Section 9 and its IRR.

C. Reporting of Covered and Suspicious Transactions:

●​ Covered Transactions:
○​ Defined by thresholds: Transactions involving
amounts exceeding PHP 500,000 within one
banking day; for casinos, exceeding PHP 5 million;
for real estate, exceeding PHP 7.5 million.
●​ Suspicious Transactions:
○​ Includes transactions with no legal purpose,
unidentifiable clients, or inconsistent with known
client profiles.
●​ Reporting Deadlines:
○​ Covered Transaction Reports (CTRs) within five
working days.
○​ Suspicious Transaction Reports (STRs) within the
next working day.
●​ Special Circumstances:
○​ If a transaction breaches the threshold and appears
suspicious, file a CTR first, then update to an STR.
●​ Penalties for Failure to Report:
○​ Imprisonment of six months to four years, or fines of
PHP 100,000 to PHP 500,000, or both.
●​ Reference: AMLA Section 9 and its IRR.

4. Confidentiality and Protection

A. Confidentiality of Reports:
●​ Prohibited Actions:
○​ Disclosing the fact that a CTR or STR has been
filed, its contents, or any related information.
●​ Penalties for Breach:
○​ Imprisonment of three to eight years and fines of
PHP 500,000 to PHP 1 million.
●​ Reference: AMLA Section 9, Paragraph C.

B. Safe Harbor Provision:

●​ Protection for Reporters:
○​ Immunity from administrative, criminal, or civil cases
if reports are filed in good faith and regular
performance of duties.
●​ Penalties for Malicious Reporting: